Asset Depletion Mortgage California: Qualify Using Your Assets, Not Your Paycheck
High net worth. Substantial assets. But no traditional W-2 income — or income that doesn’t reflect your real financial strength. This is one of the most common situations DiVita Home Finance encounters with California clients, particularly executives, retirees, investors, and self-employed business owners. The solution is an asset depletion mortgage, also called an asset dissipation or asset utilization loan.
Instead of qualifying you based on employment income, the lender divides your liquid assets by the loan term (typically 360 months for a 30-year loan) to calculate a hypothetical monthly income. That calculated figure is then used to qualify you for the mortgage. The result: you can potentially qualify for a large California mortgage using nothing but your investment portfolio, retirement accounts, and bank balances.
How the Asset Depletion Calculation Works
The formula varies by lender, but the most common approach:
| Asset Type | Typical Countable % | Example Balance | Countable Amount |
|---|---|---|---|
| Checking / savings | 100% | $500,000 | $500,000 |
| Taxable investment accounts | 100% | $2,000,000 | $2,000,000 |
| IRA / 401(k) (if 59½+) | 60–70% | $3,000,000 | $1,800,000–$2,100,000 |
| IRA / 401(k) (under 59½) | 50–60% | $1,000,000 | $500,000–$600,000 |
| Vested stock options / RSUs | Varies | — | Lender-specific |
Sample calculation:
Total countable assets: $4,000,000
Divide by 360 months: $11,111/month imputed income
With a 43% DTI limit: qualifies for up to ~$4,800/month housing payment
At 6.5% rate, 30-year: qualifies for approximately $760,000 loan
The actual math depends on the lender. This is why working with a broker matters enormously on asset depletion loans.
Bank vs. Mortgage Broker on Asset Depletion: The Difference Is Massive
Asset depletion guidelines vary dramatically from lender to lender — more than almost any other loan type. We’ve seen cases where:
- Bank A counts 60% of retirement assets; Lender B (broker-only wholesale) counts 100%
- Bank A uses a 360-month divisor; Lender C uses a 240-month divisor — making the same $3M count as $8,333/month vs. $12,500/month
- Bank A requires assets to cover loan payments for 60 months after closing; Lender D requires only 12 months reserve
- The qualifying loan amount for the same borrower can vary by $300,000–$500,000 between lenders
Your bank can only offer you their program. DiVita Home Finance shops our entire wholesale network to find the lender with the most favorable asset depletion guidelines for your specific asset mix — and we consistently find solutions that banks can’t match.
Who Uses Asset Depletion Mortgages?
- Retirees with significant portfolios but limited reportable income from Social Security, pension, or required minimum distributions
- Tech executives and employees who hold large concentrated stock positions or vested RSU portfolios
- Real estate investors whose properties generate cash flow that doesn’t show clearly on tax returns
- Self-employed business owners who write off substantial expenses, resulting in lower net income on Schedule C
- High net worth individuals who prefer to keep assets invested rather than liquidating to make a large down payment
Asset Depletion Loan Requirements
- Credit score: Typically 680–720 minimum; 740+ gets best pricing
- Down payment: Usually 20–30% (these are jumbo or non-QM loans in most cases)
- Asset documentation: Last 2–3 months of statements for all counted accounts; retirement accounts require additional documentation
- Asset seasoning: Assets typically must have been in your accounts for 60–90 days
- Reserve requirement: Most lenders require significant assets remaining after closing (6–24 months of payments)
- Property type: Primary residence, second homes, and investment properties all available
Asset Depletion for California’s High-Cost Markets
Asset depletion is particularly common in California’s highest-cost markets where loan amounts frequently exceed conforming limits. We regularly structure asset depletion loans in:
- Marin County — Where the median home price exceeds $1.5M
- San Francisco — Common for retirees downsizing or tech professionals with large RSU portfolios
- Los Angeles — Beverly Hills, Malibu, Bel Air, Pacific Palisades
- East Bay — Orinda, Lafayette, Piedmont
Asset Depletion vs. Bank Statement Loans vs. DSCR Loans
Non-traditional income qualification isn’t one-size-fits-all. Here’s how to choose:
- Asset depletion: Best when you have significant liquid assets but limited income. Ideal for retirees, executives with large portfolios.
- Bank statement loans: Best for self-employed borrowers with consistent business revenue. Uses 12–24 months of deposits instead of tax returns.
- DSCR loans: Best for real estate investors where the rental income of the property itself qualifies the loan. No personal income required.
Get Your Asset Depletion Pre-Approval
DiVita Home Finance specializes in non-traditional income qualification. We’ve placed asset depletion loans across California’s highest-cost markets and know which wholesale lenders offer the most favorable terms for your specific asset mix.
Call or text: 800-239-1103
Or start your application online. We’ll run your numbers across our lender network and tell you exactly what you qualify for.
